Buying a home is one of the largest purchases you’ll make in your life, so it’s important to understand the ins and outs before you begin the process. Before you even start looking at homes, it’s a good idea to discuss your mortgage options with a lender. Having realistic expectations on what you can afford and knowing exactly how much cash you’ll need upfront when buying a house will set you up for home buying success.
Your mortgage lender is a great resource and will help you determine which type of mortgage works best for your individual needs, but it’s a good idea to have an understanding of the different types of mortgages so you can ask thoughtful questions along the way. Here are a few questions to get you started.
Are You a First-Time Buyer?
Often, the down payment is one of the biggest barriers to entering the world of homeownership. Many homebuyers don’t know that there are quite a few affordable, low to no down payment options available. The FHA Loan is an option that has a lower credit score and smaller down payment requirement – as low as 3.5%. Additionally, there are state housing finance agency programs that offer grant funding to eligible first-time buyers for down payment and closing cost assistance.
Are You a Veteran?
If you happen to be active-duty military, a veteran, or the spouse of a military member, you’re in luck! The VA Loan, backed by the U.S. Department of Veterans Affairs, is specifically created for those serving our country. A VA Loan offers a no down payment option.
Are you a First Responder?
Community heroes should be honored, and the mortgage industry does just that! Virginia Housing and the FHLB have partnered to offer up to $8,000 of grant funding for law enforcement, firefighters, educators, and other first responders who are first-time homebuyers through the Community Heroes product.
Additionally, through our Bank’s partnership with the Federal Home Loan Bank of Atlanta, C&F Mortgage is proud to offer up to $7,500 of down payment and closing cost assistance to those who spend their lives serving others through the Community Partners product.
Are You Looking to Buy in a Rural Area?
If you choose to buy a home in a location deemed ‘rural’ by the USDA, you may qualify for a USDA loan. There are certain specifications, including income limits and minimum credit score requirements in order to take advantage of this type of mortgage. If you do meet the qualifications, you can get up to 100 percent financing toward your home purchase.
Are You Rebuilding Your Credit?
Owning a rental property is a great way to bring in extra income. If you do not mind renting to visitors when you are not there, the income can be a great additional subsidy. However, you should not purchase a vacation home if you’re solely dependent on your rental house income because it can fluctuate based on the demand for visitors.
No matter where you are in your homeownership journey, C&F Mortgage is focused on you and your mortgage needs! Get in touch with one of our local industry experts today.